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Forex Today: UK inflation, pound falls

Forex Today: UK inflation, pound falls

Positive results from banks and speculation on AI advances lift major US stock indexes to new long-term high prices.

➡️ UK CPI(inflation) data released yesterday showed a stronger-than-expected decline in the annualized rate, from 8.7% to 7.9%. This led to slightly more dovish expectations from the Bank of England on rate rises and saw the pound fall accordingly yesterday, although the move was nothing out of the ordinary.

➡️ US stock markets saw prices advance to new 1-year highs in the NASDAQ 100 Index and S&P 500 Index yesterday before mostly giving up gains by the end of the day. Trend traders will be attracted to being Long these indices now.

➡️ In the Forex market, the US dollar made a small advance in the last day. However, the Asian session saw the strongest major currency as the Australian dollar while the British pound was the weakest. This brings the GBP/USD and AUD/USD currency pairs into focus.

➡️ The price of wheat rose sharply yesterday, with futures ending the day 8% higher, after Russia threatened to hit Ukrainian wheat exports by ship.

➡️ Yesterday there was a release of Australian unemployment data that came in better than expected, with enough new jobs created to keep the unemployment rate at 3.5%.

➡️ Today there will be a release of US unemployment claims data, which is expected to be essentially unchanged from last month.

 

Credit by DailyForex.com

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